Columbus – Lack of checks and balances led to more than $240,000 in findings for recovery in the 2007 audit of the Warrensville Heights City School District (Cuyahoga County) released today by Auditor of State Dave Yost.
“Privatization of a non-core function can save money and increase efficiency – but only if you are paying attention,” Auditor Yost said. “These overbillings occurred because of lack of management controls.”
R.L. Thomas Transportation Incorporated (RLTTI) was a contracted provider of student transportation services for the district for the period of August 21, 2006 to June 7, 2007. Due to irregularities or errors in invoicing presented by RLTTI and lack of invoice review and maintenance by the district, the audit determined the district was overcharged by $236,838. Auditors found that there were duplicated billings for students, double-billing for one-way trips and billings for students who were pulled from the transportation rolls. A finding for recovery was issued against R.L. Thomas Transportation Incorporated for the full amount of $236,838.
Throughout the course of the audit, 36 credit card purchases totaling $4,785 did not include an invoice or receipt. Without this supporting documentation, auditors are unable to determine if the expenditures were for proper public purpose. Of these expenditures, former Board Member Sabrina Green made $113 in credit card purchases at retail stores and a restaurant. Former Superintendent Elaine Davis made $3,147 in unsupported credit card purchases at retail stores, restaurants and hotels. Former Treasurer Brent Delman made $1,525 in unsupported credit card purchases at retail stores, restaurants and hotels. Findings for recovery have been issued against these individuals for these unsupported purchases.
The audit recommends that the school district implement better control systems for reviewing payments made to vendors and maintaining supporting documentation for expenditures.
A full copy of this audit may be accessed online.
The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,600 state and local government agencies. Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.